Court Overturns LNG Rail Transport Rule

A federal appeals court has overturned a Trump-era rule allowing the transport of liquefied natural gas (LNG) by rail, citing inadequate safety evaluations by the Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA). The court agreed with environmental groups and state attorneys general who argued that the rule posed significant risks without appropriate regulations, such as limits on the number of tank cars or speed restrictions. Judge Florence Pan highlighted the potential catastrophic consequences of transporting LNG, emphasizing that the risks could lead to disasters comparable to historical events. The Biden administration had previously suspended the rule in 2023 while reviewing Trump administration policies but continued to defend it in court. Environmental advocates celebrated the ruling, asserting it safeguards communities near railways from potential hazards associated with LNG transport. The PHMSA has yet to indicate when a revised rule might be proposed.